AirAsia asks for low cost airport

AirAsia asks for low cost airport

Agence France-Presse, Kuala Lumpur

Malaysian discount carrier AirAsia on Tuesday urged the
government to turn former Subang airport into a regional low cost
aviation hub to help attract more tourists and reduce operating
costs.

AirAsia chief executive officer Tony Fernandes expects direct
cost savings of 10-15 percent if the government approved plans
for a dedicated low-cost terminal at Subang instead of one at
Kuala Lumpur International Airport (KLIA).

The government is deciding how best to promote Kuala Lumpur as
a regional low-cost carrier hub as neighboring Singapore pushes
ahead with plans to build a dedicated low-cost terminal at its
Changi Airport.

"If we include airport-related costs (from a dedicated low-
cost terminal at Subang), we could save as much as 30 percent,"
Fernandes told reporters, adding that any cost savings would be
passed on to passengers.

He warned that staying at KLIA could lead to southeast Asia's
leading budget carrier losing its competitive edge against a
growing number of rivals.

"My fear is that charges will go up if we stay at KLIA ... the
Malaysian airport authorities will have to impose higher charges
to recover investments on a new terminal dedicated to low-cost
carriers," he said.

"I firmly believe two airports (Subang and KLIA) will benefit
the country a lot more," Fernandes said, adding that such a
scenario would help to turn Kuala Lumpur into a hub for
international and low-cost carrier traffic.

Fernandes said a low-cost carrier terminal at Subang would
reduce costs and improve turnaround times.

He said national carrier Malaysian Airline System would not
lose out on connectivity to other destinations from a low-cost
hub at Subang as AirAsia passengers do not normally use
connecting flights.

In fact, if there is a dedicated low-cost carrier terminal at
Subang, Malaysia Airlines would be able to increase the frequency
of its flights to other countries due to freed-up capacity, he
said.

Fernandes said the move to Subang was a 'win-win' situation
for all those concerned, adding that the government should help
AirAsia to maintain its lead in the sector.